"Killer hardware" is not a phrase that's been associated with Microsoft Corp.'s (MSFT) fledgling Windows Phone effort in the past. Much like Google Inc.'s (GOOG) Android, Microsoft has chosen the low road try to court third-parties and differentiate itself on an interface level, rather than necessarily beat the top players hardware-wise.

I. New Features, New Apps

But much like Android evolved to sport some of the most bleeding edge hardware the industry has to offer, Windows Phone 8 represents Microsoft's own evolution; the chance for the mobile veteran to finally show off its decidedly different user interface on high-end hardware.

Microsoft CEO Steve Ballmer describes, "[The Windows Phone 8 handsets are] new killer hardware. I would argue some of the best hardware you will find, if not the best hardware you'll find in any smartphone form factor."

While Microsoft's animated mostly two-tone "Live Tiles" interface (aka Metro UI) tended to draw strong reactions -- either admiration or disdain -- the operating system maker is offering arguably the most radical user interface in the business. You can argue that's a good thing or a bad thing, but you can't fault Microsoft for not innovating; if anything its critics are compelled to argue it has over innovated.

Microsoft would surely disagree.

In the new operating system release Microsoft continues to push the boundary. It now allows a mix of smaller and bigger Live Tiles. Before the only option was to pin or unpin tiles; now you also get the option of growing small tiles to be big or shrinking big tiles to be small.

Customizable tiles in Windows Phone 8

The lock screen is now able to accept animations from apps (with permission from the user) open a world of new possibilities to Microsoft's growing legion of WinPhone app developers, who to date have produced 120,000 total apps.

Demoed examples included feeds from Group, the Picture Roll, or even Facebook, all on your lock screen.

Microsoft has also worked hard to woo high profile app developers, and announced that 46 of the top 50 titles in Android and iOS will now be on the Windows Phone. Long missing new additions include Temple Run and The Walt Disney Comp. (DIS) hit "Where's My Water?". At the start of 2013 Pandora Media Inc. (P) will be launching an exclusive Windows Phone app with a full year of ad-free music (Microsoft must have paid a pretty penny for that). Skype is also built into the new operating system.

Given U.S. carriers’ shift to bandwidth-capped connections, another key Windows Phone 8 addition is Data Sense. Microsoft brags that it compresses and decompresses its data traffic much more efficiently than its rivals Apple, Inc. (AAPL) and Google. The net result is that Windows Phone will take longer to hit their data cap and be less likely to incur overages. The built in monitoring will also give users peace of mind that they didn't "accidentally" exceed their allotment.

With Data Sense, the phone even automatically crawls onto Wi-Fi networks you have access to, in essence making it sort of the war-driver of the smartphone world. Microsoft estimates that with data sense you will get 45 percent more web browsing per unit of data.

Microsoft also has a brand new children-geared app called "Kid's Corner", which allows kids to play games or apps on their parent's smartphone with parental-imposed restrictions. Microsoft invited Jessica Alba to give her thoughts on the app. She comments, "I love kids corner, I think it's awesome. I love that I can curate the content. I don't have to worry about my kid going into my social media networks or emailing my partners or anything like that. So my daughter who is four, when she was two she got my phone and typed away and it showed up on my Twitter feed."

Jessica Alba loves Windows Phone [Image Source: The Verge]

In other words, Microsoft hopes Kid's Corner will help stop the youngsters from sending embarrassing "tweets" on your behalf.

Microsoft has tied a new feature called "Rooms" into its people hub, which is equal parts an extension Google+ Hangout and an extension of the existing Groups People hub category system.

For fans of Apple's iTunes with a closet liking for Microsoft products, Microsoft also has created an app that allows your Windows Phone to connect with your iTunes library (no Zune Media Player necessary). This means Mac OS X computer users could use Windows Phones, an unlikely, but amusing prospect.

Microsoft has beefed up its Office apps as well. There's superior SkyDrive syncing across the cloud of Windows 8 and Windows Phone 8 devices. And OneNote now supports speech to text notes.

Lastly, Microsoft is offering up Xbox Music in finished form. The 30 million track catalog is available for both ad-supported (free) and ad-free ($9.99 USD per month) streaming.

The phone also sports two chips -- a digital-to-analog converter (DAC) for better headphone sound quality and HTC's exclusive pictures-from-video chip technology. Only a couple Android smartphone and the new Windows Phone will have those features; the iPhone is left behind without the ability to capture photos from video and with inferior sound quality.

The HTC Windows Phone 8X

Nokia Oyj. (HEX:NOK1V) brings some compelling features of its own with its PureView optical image stabilization -- a smartphone industry first. Samsung Electronics Comp., Ltd.'s (KSC:005930) Windows Phone also made a brief appearance, although it looked a bit anemic, compared to its high-end brethren. Ballmer praised its strengths primarily by saying that it was "unbelievably thin, incredibly light" -- the handset is arguably less compelling than the actual additional hardware muscle offered by Nokia and HTC.

III. Now on Three of the Top Four U.S. Carriers

The other big news is that, as rumored, Verizon Communications -- the joint subsidiary of Verizon Communications Inc. (VZ) and Vodafone Group Plc. (LON:VOD) -- is diving into Windows Phone. It will be the exclusive carrier, for now, to carry the Samsung Ativ in the U.S. The Ativ will launch on Big Red, the largest U.S. network, in December.

AT&T, Inc. (T) -- the initial U.S. adopter of Windows Phone -- is rewarded with the high-end Nokia Lumia 920 and the HTC 8X, arguably the most compelling launch Windows Phone 8 handsets.

T-Mobile USA, the fourth place American carrier and subsidiary of German telecommunications giant Deustsche Telecom AG (ETR:DTE) is finally getting in on the Windows Phone action, as well, as announced. It will be getting the powerful HTC 8X, in addition to the budget-minded Nokia Lumia 822. Thanks to its recent merger with MetroPCS Communications, Inc. (PCS) T-Mobile could be the carrier to beat for customers who want an 8X.

That leaves floundering Sprint Nextel Corp. (S), as the odd man out; the only major U.S. carrier not to adopt Windows Phone. Sprint has increasingly turned its back on Windows Phone, and -- to an extent -- Android. It is today pinning most of its sales hopes on Apple; on the prospect of luring in iPhone 5 customers to its "unlimited" data plan. Sprint recently took out a $7B USD loan to fund a lump sum payment to Apple to convince it to let it carry the iPhone

Windows Phone 8, like Windows 8, will certainly endure its fair share of criticism. But it deserves credit for not shying away from pushing the bounds of user interfaces. And its moves to finally reach parity on certain popular apps, high end hardware, and carrier selection make it much more of a real competitor to Android and Apple, the current kings of the market.

You're just sad that Windows Phone 8 is actually innovative, is the best performing mobile OS of them all, and will actually give Apple a run for their money.

Hard not to be excited about competition in the mobile space bud... since it benefits us all. But, keep up that arrogant attitude; eventually, everyone will just be "fanboi of INSERTCOMPANYHERE" to you, and we'll just all be happy on our great phones while you're miserable on your piece of iJunk that hasn't innovated anything software side since 2007.

quote: Because everyone who actually likes Windows Phone is paid. Guess there are a lot of people getting paid to Like the X-Box 360 too.

Not sure where you are going with this. I loved the Zune, still love it to this day, yet I prefer Android handsets over windows phones. Its not that there is anything wrong with it really, its a decent OS, but I still prefer my JB experience overall.

More article related though I am glad that Microsoft is keeping the music service going. I still have the classic zunepass where I can keep 10 songs a month for 15 bucks a month.

that wouldn't surprise me.wp8 runs on the same hardware as android phones, so this "killer hardware" is really just what everyone else has.i cannot get used to the interface. i just tried out a windows 8 laptop at a store, and it's counter intuitive as hell. wastes so much screen space with randomly sized icons. this is a huge step backwards, especially on small mobile screens where space is at a premium. i'm sticking with android, thank you.